This article is Part 1 and is going to discuss the standard real estate agreement of purchase and sale for a resale home. Since the OREA Agreement is numerous pages and this article is limited in size, we are only going to discuss half of the first page. For the most part, where you are buying resale property in Etobicoke, Mississauga, Vaughan or Thornhill, or Ontario for that matter, you will likely utilize, or your agent will utilize OREA's Agreement of Purchase and Sale. The Agreement of Purchase and Sale states the rights and obligations between the Vendor (home seller) and the Purchaser. The key concern for either party is to ensure that the Agreement contains the proper provisions and safeguards to meet your requirements. Hopefully, conditions though will not be needed and everything will go off without a hitch. However, this is not always the case, and when an unsuspected problem arises, it's these "conditions" or "clauses" within the Agreement that are likely to provide protection to a Purchaser or Vendor.
At the start of any agreement the Parties are defined. It is important that the parties to the agreement are properly labelled as this minor mistake could cause a great deal of frustration and confusion. The "Seller" in almost all cases will be the registered owner of the property. Where the "Seller" is a Corporation, a partnership, or an estate, a more thorough examination must be completed to ensure that the "Seller" has the legal capacity to properly convey the property. From the Buyer's prospective, title to the property can be directed to another named individual, i.e. only the wife signed the agreement, but title is to be directed to the wife and husband as joint tenants. In another article we will explain joint tenants and tenant in-common.
The next section of the OREA Agreement contains the description of the property, the municipal address, legal description, and lot size. Most Agreements now a day's neglect to contain the lot dimensions. There are a number of reasons why real estate agents are not including the dimensions of the lot, but the main problem that presents itself where the lot size is included is where the lawyer discovers a significant difference from the Agreement to the dimensions on a plan of survey. Where this is the case the Purchaser's should be contacted for instructions as this significant difference could mean an alteration in price or even termination of the Agreement as it is not what the Purchaser bargained for.
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This blog is not to be construed as legal advice and you should consult a lawyer for legal specific matters.